What is the Franchisor's recourse if a Bojangles franchisee ceases to operate a restaurant?
Bojangles Franchise · 2025 FDDAnswer from 2025 FDD Document
open, and within one (1) year of the final condemnation determination opens, a substitute Restaurant on a new site approved by Franchisor;
- (8) If Franchisee ceases to operate or otherwise abandons, or attempts to cease to operate or abandon, the Restaurant or enters into an agreement to sell, or sells, or purports or attempts to sell, the real property upon which the Restaurant is situated, or substantially all right, title and interest in and to the Restaurant or real property lease, or substantially all of the assets of Franchisee or of the Restaurant, without Franchisor's prior written consent; provided, however, that upon the occurrence of any of the foregoing events, Franchisor may, in lieu of immediate termination of this Agreement, request from Franchisee, a statement of intentions and assurances that no event in breach of this Agreement is so contemplated, which statement and assurances shall be delivered in writing within twenty-four (24) hours of Franchisor's request. In addition Franchisor may request, and Franchisee shall provide within five (5) business days thereafter, a performance bond from Franchisee, the amount of such bond and the issuing entity to be solely at Franchisor's reasonable discretion.
- (9) If any other Franchise Agreement or Development Agreement for Bojangles restaurants or any other agreements with Franchisor or its affiliates entered into by Franchisee or its affiliates (or any beneficial owner(s) of Franchisee or its affiliates) is terminated based upon Franchisee's or its affiliates' (or any beneficial owner(s) of Franchisee's or its affiliates') default thereunder;
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- (10) If Franchisee, after curing a default pursuant to Paragraph XIV.C. hereof, commits the same, or a substantially similar, default again within one hundred eighty (180) days after the prior default occurred, whether or not cured after notice; or
- (11) If Franchisee repeatedly is in default under Paragraph XIV.C.
Source: Item 23 — RECEIPTS (FDD pages 82–573)
What This Means (2025 FDD)
According to Bojangles's 2025 Franchise Disclosure Document, if a franchisee ceases to operate or abandons their restaurant, or attempts to do so, Bojangles has specific recourses. Bojangles may request a statement of intentions and assurances from the franchisee, which must be delivered in writing within 24 hours of the request.
In addition to the statement, Bojangles can request a performance bond from the franchisee. The amount of this bond and the issuing entity are determined at Bojangles's reasonable discretion. This bond serves as a financial guarantee that the franchisee will adhere to the terms of the franchise agreement.
These measures allow Bojangles to address potential breaches of the franchise agreement proactively. By obtaining assurances and a performance bond, Bojangles aims to mitigate any negative impact resulting from a franchisee's cessation of operations and ensure continued compliance with the franchise agreement. Bojangles also has the option to purchase the assets of all restaurants that the Developer has opened under the Development Agreement.